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Question
The Country Inn has bonds outstanding with a par value of $1,000 each and a 6.6 percent coupon. The bonds mature in 7.5 years and pay interest semiannually. What is the current value of each of these bonds if the yield to maturity is 6.8 percent?A. $988.40
B. $1,003.29
C. $1,005.88
D. $1,008.36
E. $1,009.47
Answer
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